By Phil Franz-Warkentin, Commodity News Service Canada
June 19, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 11:00 CDT Thursday, although the trade was choppy as values bounced around throughout the morning.
“The markets are a little jittery today,” said one canola trader. CBOT soybeans were also chopping around on Thursday, but the soy complex was trending higher at midsession.
While most of the Canadian canola crop is in the ground, excessive moisture in some parts of Western Canada will keep some intended acres unseeded this year. With the extent of the lost or damaged area still unknown, the broker added that there are “still enough weather issues to keep canola supported.”
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The biggest gains were in the old crop July contract, which was underpinned by both commercial and speculative buying interest. Canola remains cheap compared to soybeans, making the nearby futures attractive despite their continued strength, said the broker.
The large old crop canola supplies still overhanging the market did temper the advances to some extent. A slightly firmer tone in the Canadian dollar was another bearish influence.
About 9,500 canola contracts had traded as of 11:00 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 11:00 CDT:
